Introduction to Bitcoin

Bitcoin has been in the news the last couple of weeks, but a lot of people are still unaware of them. Could Bitcoin be the future of online currency? This is just one of the questions, frequently asked about Bitcoin.

The Bitcoin exchange rate does not depend on the central bank and there is no single authority that governs the supply of CryptoCurrency. However, the Bitcoin price depends on the level of confidence its users have, as the more major companies accept Bitcoin as a method of payment, the more successful Bitcoin will become.

Benefits and Risks of Bitcoin

One of the benefits of Bitcoin is its low inflation risk. Traditional currencies suffer from inflation and they tend to lose their purchasing power each year, as governments continue to use quantative easing to stimulate the economy.

According to Bitcoin chart, the Bitcoin exchange rate went up to more than $1,100 last December. That was when more people became aware about the digital currency, then the incident with Mt. Gox happened and it dropped to around $530.

In 2014, We expect exponential growth in the popularity of bitcoin around the world with both merchants and consumers, Stephen Pair, BitPay’s co-founder and CTO, âand anticipate seeing the biggest growth in China, India, Russia and South America.

India has already been cited as the next likely popular market that Bitcoin could move into. Africa could also benefit hugely from using BTC as a currency-of-exchange to get around not having a functioning central bank system or any other country that relies heavily on mobile payments. Bitcoin’s expansion in 2014 will be led by Bitcoin ATMs, mobile apps and tools.